Africa’s leading payment technology company, Flutterwave, has been granted the Switching and Processing License by Nigeria’s apex bank.
The license, which is a highly eyed, and most valuable payment processing license by the Central Bank of Nigeria (CBN), will give Flutterwave the ability to process payments without the need for third party partners and middle-merchants.
According to the statement released by the Unicorn company on its official blog, Flutterwave has been working with its Payments Services Solutions Provider (PSSP), and International Money Transfer Operator (IMTO) licenses. With these licenses, payments have to be routed through partners.
“Previously, we operated in Nigeria with our Payments Services Solutions Provider (PSSP) and International Money Transfer Operator (IMTO) licenses. So, whenever you pay a merchant on Flutterwave, you’re leveraging our PSSP license. Whenever you send money from the UK to Nigeria, you’re leveraging our IMTO license. But, because of the complex nature of the payments network, we work with other partners behind the scenes to process and settle these transactions in real time. Now, with our new license, we process transactions directly and much more.”
The Fintech giant noted that this license does not mean it would stop working with its partners, but it will give it more power and control over the process of financial transactions that go through its channel.
“With more oversight of the payment value chain, we are able to deliver an improved experience to our customers. The switching license gives us more room to operate and serve our customers while removing various constraints. This license is a game changer for us and our customers and we can’t wait for you to enjoy all that it offers. With this license, we’re able to get you quality support speedily,” Flutterwave said.
Speaking in the newly acquired license, Flutterwave Founder and CEO, Olugbenga “GB” Agboola said,
“This is big news for our customers, partners, investors, and other stakeholders. It is an important milestone in our growth story. Building a thriving payments ecosystem in Nigeria, Africa’s largest economy, is in line with our goal of developing a world class and secure payment infrastructure for global merchants and payment service providers across the continent.”
Flutterwave’s Chief Regulatory, and Government Affairs Officer, Oluwabankole Falade, also commented on the new milestone. He said:
“We’re thrilled to have been issued this license after fulfilling all of the regulatory requirements. The application process was very rigorous and included a detailed review of our operations as a business. As a switch, we have more responsibilities and will continue to work with Regulators to ensure we meet and exceed their expectations.”
Flutterwave was founded in 2016 by Olugbenga “GB” Agboola. The company provides payment solutions to global merchants. Flutterwave serve as a plug for payment services providers, providing them with technology and infrastructure needed for a thriving business.
Last year, Flutterwave became a unicorn company, after raising $250 million in its series D funding round. The company is now valued at over $3 billion.